Market Closes - September 8, 2015

CBOT futures closed moderately higher after the 3-day weekend. The bulls and bears are debating yields. Bulls say early reports are disappointing; bears will point out tonight’s USDA crop condition report that’s unchanged from last week. Futures were supported by higher energy futures and a weaker US Dollar. Corn futures finished strong, but soybeans closed weak and well off the day’s highs. Note that the spec funds are long corn futures, but short soybeans and wheat. USDA will release its updated crop estimates on Friday.

Lean Hog futures closed slightly higher beyond the nearby October LH contract. Support came from the cattle market, stronger pork values and the upward momentum off the August 24 lows. FOB Plant Pork ended up .36 at 85.67.

Lexington Auction (Tues)Weighted Average Report for 09/08/2015 Receipts: 436 Last Week: 667 Year Ago: 1197 Compared to last week steer calves under 600 lb sold 2.00 to 5.00 lower with featherweight steers sharply lower; over 600 lbs sold weak in a light test. Heifer calves under 600 lbs sold 5.00 lower in a light test; over 600 lbs sold weak. High temperatures reduced demand for soft fleshy new crop featherweight calves today. Yearlings sold steady to weak in a light test. Slaughter cows sold 1.00 to 2.00 lower with light demand. Slaughter bulls sold steady to weak with moderate demand. Kentucky Weekly Livestock Summary for the week of Aug 31-Sep 5, 2015. Receipts This Week Last Week Last Year 12,779 12,409 11,058 Compared to last week, steer and heifer calves began 2.00 to 5.00 lower continuing reaction to the price plunge at the CME. As the week progressed, however, the markets recovered a bit finishing with steers unevenly steady and heifers mostly steady to 2.00 higher. Demand was light to moderate for an average to good quality offering. Yearling steers and heifers sold 1.00 to 3.00 higher with moderate to good demand. Slaughter cows were steady to 2.00 lower and slaughter bulls steady to 3.00 lower with light to moderate demand.

Supply consisted of 9 percent slaughter, 4 percent replacement, and 87 percent feeder cattle. In the feeder supply, steers made up approximately 34 percent and heifers approximately 36 percent. Steers and heifers over 600 lbs totaled approximately 45 percent.